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Two Michigan business groups warn that Trump's auto tariffs could cause autoworker hardship.

Two Michigan business groups have urged President Donald Trump not to proceed with plans to impose 25% tariffs on imported cars and parts. They said that this would result in dramatic price increases, disruptions to the supply chain, and pain for Michigan's auto-heavy economy.

The Detroit Regional Chamber, along with MichAuto, a mobility and automotive association, wrote in a joint letter that the increased costs could cause disruptions throughout the supply chain, and would, most importantly, result in significant increases for American consumers.

The pain of working class citizens in Michigan will be severe. About?$300 Billion? is contributed by the auto industry. Detroit Regional Chamber estimates that the auto sector contributes about?$300 billion annually to Michigan's economic growth.

Trump announced last week that he would follow through with his threats to impose new tariffs on imported vehicles. He said a 25% tax on cars not made in the U.S. will be imposed on April 3, on top of existing duties. He may also announce new auto duties as part of the sweeping new tariffs that he will be announcing on Wednesday.

The groups claimed that the tariffs would harm the state's auto industry and economy. They noted there were more than 1,000 automotive manufacturers based in Michigan.

The letter continued, "The tariff policies will increase prices and drive down consumer demand. This will lower the profitability of the companies. It will directly affect the hardworking Americans that assemble these iconic vehicles."

Some owners may decide to keep their old cars longer if the new car price is higher. This could increase used car prices. The letter stated that "these increased vehicle costs would be disproportionately paid by middle-class and working-class families."

Kush Desai, White House spokesperson, responded by noting that automakers such as Hyundai had announced new investments in America and arguing that those investments along with Trump's request for a new deduction on interest rates on car loans will "continue to drive historic manufacturing growth and job creation."

A group of General Motors, Ford and Toyota representatives, Stellantis, Stellantis, and others, warned that tariffs would increase vehicle costs. Hyundai warned auto dealers that they might need to adjust their prices if tariffs go into effect.

(source: Reuters)